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Pennsylvania; Georgia; and Nova Scotia were not planted。

Virginia; Maryland; and New England were planted; and though they

were very thriving colonies; yet there was not; perhaps; at that

time; either in Europe or America; a single person who foresaw or

even suspected the rapid progress which they have since made in

wealth; population; and improvement。 The island of Barbadoes; in

short; was the only British colony of any consequence of which

the condition at that time bore any resemblance to what it is at

present。 The trade of the colonies; of which England; even for

some time after the Act of Navigation; enjoyed but a part (for

the Act of Navigation was not very strictly executed till several

years after it was enacted); could not at that time be the cause

of the great trade of England; nor of the great naval power which

was supported by that trade。 The trade which at that time

supported that great naval power was the trade of Europe; and of

the countries which lie round the Mediterranean Sea。 But the

share which Great Britain at present enjoys of that trade could

not support any such great naval power。 Had the growing trade of

the colonies been left free to all nations; whatever share of it

might have fallen to Great Britain; and a very considerable share

would probably have fallen to her; must have been all an addition

to this great trade of which she was before in possession。 In

consequence of the monopoly; the increase of the colony trade has

not so much occasioned an addition to the trade which Great

Britain had before as a total change in its direction。

     Secondly; this monopoly has necessarily contributed to keep

up the rate of profit in all the different branches of British

trade higher than it naturally would have been had all nations

been allowed a free trade to the British colonies。

     The monopoly of the colony trade; as it necessarily drew

towards that trade a greater proportion of the capital of Great

Britain than what would have gone to it of its own accord; so by

the expulsion of all foreign capitals it necessarily reduced the

whole quantity of capital employed in that trade below what it

naturally would have been in the case of a free trade。 But; by

lessening the competition of capitals in that branch of trade; it

necessarily raised the rate of profit in that branch。 By

lessening; too; the competition of British capitals in all other

branches of trade; it necessarily raised the rate of British

profit in all those other branches。 Whatever may have been; at

any particular period; since the establishment of the Act of

Navigation; the state or extent of the mercantile capital of

Great Britain; the monopoly of the colony trade must; during the

continuance of that state; have raised the ordinary rate of

British profit higher than it otherwise would have been both in

that and in all the other branches of British trade。 If; since

the establishment of the Act of Navigation; the ordinary rate of

British profit has fallen considerably; as it certainly has; it

must have fallen still lower; had not the monopoly established by

that act contributed to keep it up。

     But whatever raises in any country the ordinary rate of

profit higher than it otherwise would be; necessarily subjects

that country both to an absolute and to a relative disadvantage

in every branch of trade of which she has not the monopoly。

     It subjects her to an absolute disadvantage; because in such

branches of trade her merchants cannot get this greater profit

without selling dearer than they otherwise would do both the

goods of foreign countries which they import into their own; and

the goods of their own country which they export to foreign

countries。 Their own country must both buy dearer and sell

dearer; must both buy less and sell less; must both enjoy less

and produce less; than she otherwise would do。

     It subjects her to a relative disadvantage; because in such

branches of trade it sets other countries which are not subject

to the same absolute disadvantage either more above her or less

below her than they otherwise would be。 It enables them both to

enjoy more and to produce more in proportion to what she enjoys

and produces。 It renders their superiority greater or their

inferiority less than it otherwise would be。 By raising the price

of her produce above what it otherwise would be; it enables the

merchants of other countries to undersell her in foreign markets;

and thereby to jostle her out of almost all those branches of

trade; of which she has not the monopoly。

     Our merchants frequently complain of the high wages of

British labour as the cause of their manufactures being undersold

in foreign markets; but they are silent about the high profits of

stock。 They complain of the extravagant gain of other people; but

they say nothing of their own。 The high profits of British stock;

however; may contribute towards raising the price of British

manufactures in many cases as much; and in some perhaps more;

than the high wages of British labour。

     It is in this manner that the capital of Great Britain; one

may justly say; has partly been drawn and partly been driven from

the greater part of the different branches of trade of which she

has not the monopoly; from the trade of Europe in particular; and

from that of the countries which lie round the Mediterranean Sea。

     It has partly been drawn from those branches of trade by the

attraction of superior profit in the colony trade in consequence

of the continual increase of that trade; and of the continual

insufficiency of the capital which had carried it on one year to

carry it on the next。

     It has partly been driven from them by the advantage which

the high rate of profit; established in Great Britain; gives to

other countries in all the different branches of trade of which

Great Britain has not the monopoly。

     As the monopoly of the colony trade has drawn from those

other branches a part of the British capital which would

otherwise have been employed in them; so it has forced into them

many foreign capitals which would never have gone to them had

they not been expelled from the colony trade。 In those other

branches of trade it has diminished the competition of British

capital; and thereby raised the rate of British profit higher

than it otherwise would have been。 On the contrary; it has

increased the competition of foreign capitals; and thereby sunk

the rate of foreign profit lower than it otherwise would have

been。 Both in the one way and in the other it must evidently have

subjected Great Britain to a relative disadvantage in all those

other branches of trade。

     The colony trade; however; it may perhaps be said; is more

advantageous to Great Britain than any other; and the monopoly;

by forcing into that trade a greater proportion of the capital of

Great Britain than what would otherwise have gone to it; has

turned that capital into an employment more advantageous to the

country than any other which it could have found。

     The most advantageous employment of any capital to the

country to which it belongs is that which maintains there the

greatest quantity of productive labour; and increases the most

the annual produce of the land and labour of that country。 But

the quantity of productive labour which any capital employed in

the foreign trade of consumption can maintain is exactly in

proportion; it has been shown in the second book; to the

frequency of its returns。 A capital of a thousand pounds; for

example; employed in a foreign trade of consumption; of which the

returns are made regularly once in the year; can keep in constant

employment; in the country to which it belongs; a quantity of

productive labour equal to what a thousand pounds can maintain

there for a year。 If the returns are made twice or thrice in the

year; it can keep in constant employment a quantity of productive

labour equal to what two or three thousand pounds can maintain

there for a year。 A foreign trade of consumption carried on with

a neighbouring country is; upon this account; in general more

advantageous than one carried on with a distant country; and for

the same reason a direct foreign trade of consumption; as it has

likewise been shown in the second book; is in general more

advantageous than a round…about one。

     But the monopoly of the colony trade; so far as it has

operated upon the employment of the capital of Great Britain; has

in all cases forced some part of it from a foreign trade of

consumption carried on with a neighbouring; to one carried on

with a more distant country; and in many cases from a direct

foreign trade of consumption to a round…about one。

     First; the monopoly of the colony trade has in all cases

forced some part of the capital of Great Britain from a foreign

trade of consumption carried on with a neighbouring to one

carried on with a more distant country。

     It has; in all cases; forced some part of that capital from

the trade with Europe; and with the countries which lie round the

Mediter

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